Machinery, acquired at a cost of £660,000, is reported on the Statement of financial position on 30 June 2011 at a carrying value of £431,500. A machine had been acquired for £60,000 on 1 December 2010; while one acquired for £120,000 on 1 June 2005 was sold for £52,000 on 30 April 2011. Depreciation, calculated using the straight-line method and assuming ten years’ useful life is time apportioned. Identify the balances as at 1 July 2010 in the Machinery account and Accumulated depreciation a/c.

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Accumulated Machinery a/c depreciation a/c £214,000 £226,000 £226,000 £236,000 a £720,000 b £652,000 C £720,000 d £720,000